The Internet is Interconnection

March 3, 2010 – 11:30 am

There’s a scene in the Steven Soderbergh movie, Traffic, where the widow of a drug dealer brings a doll to the Columbian drug kingpin.  ”The doll is stuffed with cocaine.  Big deal, we’ve been doing that for years,” he says dismissively.  ”No,” she answers, “the doll is cocaine.”  The whole toy is a heat-treated, compression-molded block of cocaine, undetectable to sniffing dogs.  The drug lord becomes very interested.

The Internet is like that doll… and not because it’s used by some for smuggling drugs!  Rather, the Internet is seen as a thing filled with interconnection relationships, when in fact the Internet is interconnection. The relationships make the internetwork.  They are more significant than the TCP/IP protocol, the end-to-end design philosophy, the bandwidth, or the routing algorithms, as important as all those things are.  Kill interconnection, and a network disappears from the Internet.  Kill the culture of interconnection, and the Internet dies.  Another analogy is Arthur Koestler’s concept of a holon — something that is both a whole and a part of the whole. (Thanks to Miko Matsumura for the pointer at a recent retreat.)

The value of interconnection is often missed, because it’s the space between networks.  It’s much easier to grasp the impacts of those individual networks on their customers.  Every piece of the Internet, however, must interconnect to serve its users, which means its internal policies and practices are never the whole story.  Interconnection is generally reciprocal, so if you want to benefit from a link with a network, you take on some obligations in return.  The details get complicated, and network interconnection is constantly evolving, but that’s the core magic.

Today, John Markoff published a New York Times article on how Internet interconnection may be changing.  (The short version is that private peering is short-circuiting the major backbones, with unpredictable consequences.) Markoff deserves credit for giving a serious summary of academic network science research that bears on Internet structure.  You usually don’t see these concepts in the popular press.  It matters whether or not the Internet is a scale-free network, however, as esoteric as that may sound.  As Markoff notes, even the experts can’t agree on what the Internet looks like today, raising serious questions about its performance going forward.  They just know that it’s changing.  One reason is the lack of public traffic data on Internet-connected networks, which KC Claffy of CAIDA has been warning about for years.

I wrote three law review articles about interconnection over the past three years.  I didn’t realize it, but they form a trilogy.  Only Connect argues that interconnection, not non-discrimination, should be the central focus of telecommunications policy today.  The Centripetal Network delves into the network science that Markoff’s article summarizes, raising the concern that the Internet’s interconnectivity may not be as robust as it seems.  And in Off the Hook, coming out shortly, I develop a detailed legal theory for an interconnection-based policy regime under the Communications Act.

Interconnection is poised to become even more important, because it’s not just a factor at the network layer.  Internet applications and content are increasingly becoming interconnected, moving toward the syndication model of business I proposed a decade ago. Twitter interconnects with Google for real-time search, while YouTube interconnects with blogs for content distribution.  Everyone’s a platform, and virtually everyone is both a consumer and a producer of external information.  I’m firmly convinced that the dynamics of interconnection will keep policy-makers and business executives busy for years to come.  All the more reason to make it a focal point now.

Twitter Updates for 2010-03-02

March 2, 2010 – 4:55 pm

Twitter Updates for 2010-03-01

March 1, 2010 – 4:55 pm
  • Now that the US and Canada have split their first two hockey games, when do they play the rubber match for the gold medal? #
  • @Joi Great post on formal vs. informal learning: http://bit.ly/c18P6d. Why not make formal learning > flexible & also recognize informal? #
  • Stunning how much more introspection at lower tiers of the educational pyramid than the pinnacle. http://ow.ly/1coW9 (thanks @chrislehmann) #
  • @chrislehmann I meant hubris at upper echelons of *education* (e.g. elite grad schools) but your point about policy hubris is well taken. in reply to chrislehmann #
  • NYTimes interviews @edyson: "When you say 'newsletter' [Release 1.0]. was it an actual piece of paper?" Times change. http://nyti.ms/aoJ4T4 #
  • Note to self: If I ever get the urge to muse about doing harm to students on Facebook, don't. http://bit.ly/b4K142 #
  • @pierredv: "The internet is to an ecosystem as a whale is to an elephant." http://bit.ly/d7X1Jh #
  • Happiness isn't the same as goodness. Fascinating. http://bit.ly/cwemeK (via @viewsflow) #
  • @dscheinm Cisco had fits about its identity until you figured out it was a sexy media company, right? in reply to dscheinm #
  • An interesting roundtable with 3 Googlers and Wharton colleagues about "Google, Competition, Regulation, and New Business Models." #
  • I come back from the roundtable on Google and antitrust to learn they just bought Picnik. Changes everything! ;-) #

#TransforMBA: Fixing Business School

March 1, 2010 – 11:20 am

My day job is as a professor at Wharton, the business school at the University of Pennsylvania.  Many surveys rank Wharton as the finest business school in the world; it’s certainly one of the best, and one of the biggest (>1,600 MBA students, >3,000 undergrads, >200 professors).  It’s an extraordinary institution.  I can’t think of a place I’d rather work, especially because it’s synergistic with my other activities like Supernova and tech policy wonkery.

All the more reason to think about how to blow it up.

My graduates will be senior executives of many of the world’s top corporations, titans of finance, top entrepreneurs, government officials, and other major influencers of the global economy.  The skills and insights and social networks and cultural norms they acquire in business school will propagate across their organizations, partners, and friends. So it matters how we teach them.  It’s not a given that anyone should get an MBA, or that the best students from around the world will continue to do so.  Those of us teaching MBAs should be confident we’re doing the best we can, and that it’s worth it.

Over at BusinessInsider.com, Henry Blodget is running a survey on the “World’s Best Business Schools.”  He asserts that, “there’s only one thing that really matters: The amount the school will help your future career,” and from that jumps to the conclusion that, “It’s about the value of the school’s brand and the network of contacts you build while you’re there.”  As I tweeted to Henry, the second quote doesn’t necessarily follow from the first.  Seeing the value of business school as only credentials and social networks is as wrong as recognizing only the intellectual content of the courses.  I’m pushing back on my faculty colleagues who advance the latter claim.  Both components matter, as well as others.  And an honest self-assessment is that business schools can do better.  We have a responsibility to try; we can’t just blame the students.

So I’m asking the question: how do we fix business school? I’ve started posting questions and comments on Twitter with the hashtag #transforMBA.  140 characters is limiting for substantive responses, though, so please comment on this blog post.  Let’s begin a conversation.  I’ll take ideas forward within my school, and perhaps they’ll be useful for others as well.

Twitter Updates for 2010-02-28

February 28, 2010 – 4:55 pm
  • @jobsworth brilliantly shows how sharing relies on culture: http://bit.ly/cld6VI. The trouble is that there is no Internet-wide culture. #
  • Thinking about athletes, entrepreneurs… and business school. #
  • O #
  • I'm thinking about business schools because sometimes the most conservative institutions can be the most effective revolutionaries. #
  • Started doing some exercise and yoga in the morning on the Wii fit. I just need to start early enough to beat my son to it. #
  • @jobsworth Why bake the paella? in reply to jobsworth #
  • @azeem Wii Fit great if you're like me and can't stand going to a gym (or no time), plus it makes exercise a game for the kids. in reply to azeem #
  • @azeem If there's a lid on the latte! in reply to azeem #
  • @jobsworth Never thought about layering ingredients in paella, but makes sense. in reply to jobsworth #
  • @jobsworth Some day I want to do a tech workshop/conference with integral cooking and food tasting. You'll be invited. in reply to jobsworth #
  • Network effects can still = monopoly, no? RT @webmink: Is true open source actually capitalism with the ability to monopolise eliminated? #
  • @jobsworth @martinvars will this make all your BT Fon customers into outlaws? http://bit.ly/bXlCJU #
  • @Padmasree re: why analysts categorize Net cos, historically to justify "new economy" valuations, today b/c analysts need to segment things. in reply to Padmasree #
  • @Padmasree Reminds me when years ago @dscheinm told me Cisco couldn't decide what trade assoc. to join. Default was NAM (manufacturing). in reply to Padmasree #
  • @Padmasree Being an internet company is a state of mind, not a market segment. in reply to Padmasree #
  • @sivavaid So what you're really saying is that you'll respect her in the morning? in reply to sivavaid #
  • Still beat the S&P, no? RT @skap5: Need new model for capitalizing start-ups. 10-year returns for VC industry have sunk to 8.4% annualized. #
  • Economist survey on Information http://bit.ly/adoZXY. Got a nice sushi dinner in Tokyo last fall for kicking around ideas with the author. #
  • @Padmasree That's easy: the Old Economy. Manufacturing, energy, agriculture, retail, education, etc. reinvented. in reply to Padmasree #
  • @azeem @skap5 Saying VC broken for investors different than broken for entrepreneurs. I agree it's both, though there are exceptions. #
  • @ChrisTMarsden Really, I just go for the sushi. Kenn even got me into the normally off-limits part of the Tsukiji tuna auction. ;-) in reply to ChrisTMarsden #
  • @Padmasree Ahh, we're getting tripped up on different meanings of "new economy." Re: outputs, though, what's the output of the Net? Bits? #
  • @Padmasree I say the Internet isn't a market segment b/c in a network economy, your outputs = my inputs, and so forth. in reply to Padmasree #
  • @Padmasree Re: new econ biz models, I wrote this 10 years ago for HBR, but I think it's still on target: http://bit.ly/chutL5 in reply to Padmasree #
  • @Padmasree Gotcha. I saw the @digiphile comment & agree with you. in reply to Padmasree #
  • @rmchase Thanks for that link to "singing" a contract. Will be a delightful example for my Internet law class next fall! #
  • @Padmasree Yes (re: Network Economy). Do you agree? in reply to Padmasree #
  • By the way, what are all these "Google Chrome helper" apps overwhelming my Mac's CPU? #
  • @sacca Yes, @martinvars is a genius, and a good soul. Has a great shot at the JASE (Jewish Argintinian Spanish Entrepreneur) Hall of Fame. in reply to sacca #
  • @peterme Where do they credit you for blog? Demand a correction! Think of all the people whose ugly neologisms never made it so far…. in reply to peterme #
  • @johnolilly Thanks for explanation. But why 6 instances of Google Chrome Helper app with only 3 non-Flash tabs open? in reply to johnolilly #
  • @johnolilly Can Firefox get back to the cruftless elegance of the early days? Or is bloat inherent as browsers evolve? in reply to johnolilly #
  • @johnolilly Thanks. I hope you succeed. in reply to johnolilly #
  • @azeem Was totally with you until this: "Teaching is today, in some way, about closing down to frameworks and models." Must it be? #
  • @azeem Agreed that teaching has a long way 2 go. I'm seeking help in improving it for business schools. in reply to azeem #
  • @azeem I've never quite understood the value prop. of b-school cases, perhaps b/c I come from law school, where cases are used differently. in reply to azeem #
  • Where to start on this wildly misleading Register piece about the US gov't allegedly deciding to regulate the Net? http://bit.ly/b44QUl #
  • @azeem Value of biz school should obviously include opportunity cost of 2 years working. Still think it's worthwhile for right people, time. in reply to azeem #
  • @kierenmccarthy There was no US "policy to leave the Net alone," it wasn't "rescinded", and that's not what Strickling said, for starters. in reply to kierenmccarthy #
  • @kierenmccarthy And I say that as a staffer on the 1997 Magaziner framework, the 1998 FCC "Stevens Report", other US gov't net initiatives. in reply to kierenmccarthy #
  • @jobsworth I'll really have to try to get to #defrag this year, then! I have great respect for what @enorlin does. in reply to jobsworth #
  • @kevinmarks No idea where the ACTA stuff comes from, nor do I support it. I just know there is no gov't-wide plan to regulate the Net. in reply to kevinmarks #
  • @kevinmarks I suspect ACTA is about not seeing copyright as regulation, a blind spot that @lessig and others have tried to point out. #
  • @rmack I wrote something like a rebuttal to the "Don't regulate the Net" scare tactic 5 years ago: http://bit.ly/aNLxAL. in reply to rmack #
  • @dangillmor That was my comment on ACTA, not @kevinmarks. Hollywood knows what it's doing; the gov't people have a blind spot. in reply to dangillmor #
  • @rmack Only thing that has changed is the resulting paralysis is causing harm. E.g., http://bit.ly/9Fzsk5. *That* was Strickling's point. in reply to rmack #
  • @dangillmor If ACTA were in effect, I could get you kicked off the Net for confusing me with @kevinmarks! in reply to dangillmor #
  • @rmack I don't think "the govt is naive." I think some people doing IP policy fail to see excessive copyright as bad gov't Net regulation. in reply to rmack #
  • @dangillmor You know the media mindset better than I, but I suspect 1) no public details, 2) sounds arcane, 3) "why protect pirates"? in reply to dangillmor #
  • @rmack Problem is that too many people see copyright as speech, but not also speech regulation. First thing I teach my students about IP. in reply to rmack #
  • I say we should let the Canadians keep hockey. We get all their good comedians and network news anchors; it's only fair. #

Cost is Relative

February 28, 2010 – 11:30 am

The FCC recently released a survey on broadband adoption, which found that 35% of Americans don’t have broadband at home.  The biggest reason they gave, as Susan Crawford summarizes, is cost. Broadband is just too darned expensive.

Now, maybe it is.  Many studies have shown that, on a per megabit basis, residential broadband in the US is significantly more expensive than many other countries. I could get more in Japan for $40/month than Comcast will sell me here for $100.  On the other hand, more expensive isn’t the same as too expensive.  Cost only matters relative to the other side of the equation: the benefits.  To take a famous example, roughly 90% of Americans pay for cable and satellite TV, even though broadcast TV is for free. And the average cable subscriber pays far more for the typical package of digital and premium channels today than a cable subscriber in the early 1990s.

The question is not just how much broadband costs, but how much perceived value it delivers.  People who don’t see the value will always say something costs too much.  That’s why some observers dismissed the iPhone initially because of Apple’s ridiculous $499 price.  It was expensive, all right, but enough people thought the price was worth it.  (Once Apple got through that segment of the population, it shifted to a more traditional subsidized model, although the iPhone is still more expensive than most handsets.)

So, how do we assess the value of broadband?  It comes back to the apps, service, and content. And the value isn’t just the speed or functionality that the broadband operator delivers; it’s the extended ecosystem. App developers sold a lot of iPhones, and Ted Turner sold a lot of cable TV subscriptions.  That’s where open networks come into play.  Those other participants have to feel that there’s an opportunity for them to participate and profit.  Otherwise they won’t invest and innovate around the platform.

Now, this doesn’t tell us how to ensure open networks.  It’s not always a given that further government action is needed, or what that action should look like.  My personal view as expressed in my scholarship is that interconnection is more crucial than non-discrimination here, but that it’s important to recognize the broad scope of FCC legal authority.  Regulation has costs and benefits too.  As with broadband adoption, a fair picture considers both sides of the equation.

Twitter Updates for 2010-02-27

February 27, 2010 – 4:55 pm
  • Can anyone point me to good public/group discussions on the value proposition of an MBA, or the ideal business school? #transforMBA #

Twitter Updates for 2010-02-26

February 26, 2010 – 4:55 pm
  • Nothing plowed and serious blowing snow this morning in suburban Philly. Cancelling my DC trip. #
  • @Padmasree The Internet was never a market segment. Some people still wrongly see it that way. in reply to Padmasree #
  • All biz culture? RT @tomcoates: Business culture is analogous to a massive insane inter-species violently rutting directionless stampede. #
  • I've been put on 4 committees that I don't have time for, 2 of which I'm chairing. But all potentially transformative, so I said yes. #
  • @Jason False analogy. Law school = "think like a lawyer"; biz school isn't "how to do business." Waste of time depends on the alternatives. in reply to Jason #
  • @hblodget If B-school value is based on helping your future career, why only count the brand and network of contacts? #transforMBA #
  • The @hblodget survey on business schools I'm critiquing is at http://bit.ly/dkz07D. Makes the same mistake as the views it criticizes. #
  • Life is what happens while you're busy tweeting. #
  • Yay, driveway and street plowed. Apologies to participants in the 3 meetings in DC and 1 in Philly I couldn't get to today. #
  • @hblodget I critiqued your survey in the prior Tweet. More to advancing a career than MBA brand & contacts, though they matter. And… in reply to hblodget #
  • @hblodget I'm critiquing business school publicly on Twitter #transforMBA (spread the word) and privately with Wharton colleagues. #